Another dispute in the field of gene sequencing, Illumina sued Huada Group subsidiary for patent infringement.

In the field of gene sequencing, gene sequencer is a necessary equipment in gene detection. After biological samples are processed, they enter the sequencer, and then the original data generated by the sequencer are analyzed bioinformatively to obtain sequencing results. In this field, Illumina is a well-deserved overlord. According to 2016 data, 90% of the world's second-generation gene testing data are generated by Illumina. Founded in 1998 and headquartered in San Diego, the Illumina develops, manufactures and markets integrated systems for the analysis of genetic variation and biological function. In 2006, Illumina officially entered the field of gene sequencing through the acquisition of British company Solexa. For a long time, Illumina have used their technological advantages in this field and long-term accumulation in the field of intellectual property rights, and often use patent infringement methods to sue and combat competitors. In 2017 alone, Illumina filed patent lawsuits against five European companies, namely Doctors Laboratory in the UK, TDL Genetics and Roche's Ariosa Diagnostics, and two Polish companies Centrum Badan and Medgenetix.

In 2019, Illumina once again used his usual tactics to crack down on his potential competitors, and this time, his target is Huada Group. In April 2019, Illumina filed a patent infringement lawsuit against Huada Zhizao, a subsidiary of Huada Group (BGI), Latvian Huada Zhizao, in the Dusseldorf District Court of Germany, arguing that the sequencing products of Huada Zhizao, including BGISEQ-500, MGISEQ-2000 and related chemical reagents, infringed its European patent EP1530578B1, which protects Illumina's unique technology of sequencing while synthesizing. In May 2019, Illumina filed a patent infringement lawsuit against BGI Europe A/S, a subsidiary of BGI Group, in the Danish Maritime and Commercial High Court, arguing that the BGISEQ-500, MGISEQ-2000 and related chemical reagents it produced violated its European patent EP3002289B1, which mainly protects Illumina proprietary synthetic sequencing chemistry. In addition, in this lawsuit, Illumina also alleged that BGI's product name MGISEQ-2000 infringed on its registered trademark "MISEQ".

Illumina and BGI were not so tit-for-tat at the beginning. Before 2012, Illumina and BGI had a relatively pleasant time of cooperation. In 2010, Huada purchased 128 second-generation sequencing instruments from Illumina at one time, becoming Illumina's first major customer. Because of this cooperation, Huada has become the world's largest sequencing service provider, and the Illumina also relies on Huada's feedback, and the products are becoming more and more perfect and mature. When Huada's share of the domestic market became higher and higher, Illumina felt threatened and began to take measures to curb Huada's development. In 2012, Illumina began to increase the prices of some reagents, and proposed sky-high warranty contracts, and reduced the price concessions to Huada. Because sequencing instruments are used together with reagents, without reagents, the sequencer purchased by Huada at a high price will become worthless. Later, Huada completed the full acquisition of Complete Genomics Company for US $0.1176 billion. Since then, through technology transformation and independent research and development, Huada Zhizao has gradually found a breakthrough point in the second generation sequencer. Huada Gene has gradually stopped purchasing from Illumina to purchasing products made by Huada Zhizao.

According to COO Jiang Hui of Huada Zhizao, the core technology used by Huada Zhizao sequencer is DNBSEQ, which is based on single-stranded rolling circle amplification technology, while other companies are based on on-chip bridge PCR technology to amplify PCR on-chip. There is still a big difference between the two sequencers. However, whether the sequencer and supporting reagents made by Huada Zhizhi are infringing or not is not a direct comparison between competing products, but is determined according to the scope of claims of the patent involved.

The two patents involved in the case, EP1530578B1 and EP3002289B1, were filed on August 22, 2003, and the general patent is valid for 20 years. Therefore, the two patents expire on August 22, 2023. These two patents and their families are mainly patented in some European and American countries, and the patent applications of the same family in China have not been authorized. Therefore, in China, Illumina and Huada Group should not have litigation disputes over these two patent applications.

Regarding how Huada responded, Jiang Hui said that the specific circumstances of the patent dispute are still unclear. Huada will actively respond and will not rule out counterclaims when necessary. However, as far as the current public data are concerned, BGI has 21 authorized patents in Europe, while the number of Illumina authorized patents in Europe is as high as 1370. There is still a considerable gap between the two patents. It is still difficult to compete with Illumina through counterclaims. Judging from the patent layout of Huada, most of its patents are only applied in China, which does not rule out that it regards China as its main battlefield.

Most of the upstream markets in the gene sequencing industry are still beingLight upSuch as foreign giants occupy, sequencer equipment including biochemical, circuit, optical, mechanical and other comprehensive science, there is no accumulation of enterprises want to enter the game is actually quite difficult. The patent war facing Huada is also a tough battle with uncertain odds.